The latest figures for the UK angel market show that private investors supported 3700 entrepreneurs in the UK in 2017 with a total investment of £1.7billion. That’s the good news. The bad news is that 65% of this investment took place in the golden triangle of London, Oxford, Cambridge and 85.9% of investors were male.

Investor diversity

Only 5% of angel investment focussed on Wales yet Scotland attracted 18% and Northern Ireland 6%. Clearly, we need to build capacity for angel investment beyond London and the South East. We also need to encourage more women to invest; it’s a massive untapped pool so I am keen to ensure a female-friendly culture in angel groups across the country.

At the UK Business Angels Association, we connect, build and support communities of investors and entrepreneurs. We represent over 15,000 angels investors and have access to some 26 investment funds and 17 online platforms. Supporting the early-stage investment community is what we do best through a programme of education, representation and networking.

Progressive ecosystem

Building the angel ecosystem is a priority in Wales. We have a programme in place to build connectivity with the launch of angel hubs in key locations that will support syndication and co-investment. We are identifying lead angels so that we can draw on their experience. We also have an exciting new industry-validated online learning course that will help both experienced and first-time investors.

There are a series of new Government initiatives designed to encourage angel investment including a new £100 million fund to leverage regional clusters and new additional tax relief for investing in knowledge backed businesses and new KIB funds. We can offer extensive support with tax breaks available via the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme. There are also co-investment funds to leverage syndicated deals as that it where we get the real value from angel investors.

Angels Invest Wales

Importantly, the launch of Angels Invest Wales gives us all a fantastic opportunity to reach out around the country to inspire new investors and nurture experienced angels. This isn’t another traditional networking forum or just rebrand of xénos. It is an exciting new initiative with a wider remit that is focused on offering facilitation, support and guidance that makes a real difference to entrepreneurs in Wales.
Furthermore, their new digital investment platform is making it easier for businesses to showcase opportunities and has enabled them to take on nearly 60 new investors in the last year.

We know that angel investment works best when investors work together in syndicates to pool skills, share knowledge and balance risk. It generates more firepower. That’s why we will be working with Angels Invest Wales and the team at the Development Bank of Wales to encourage and mobilise lead angels and first time investors to build syndicates.

The team will be linking Welsh entrepreneurs seeking finance and expertise, with business angels and syndicates, who are actively seeking to invest in the brightest and best opportunities Wales has to offer. It is an approach that is internationally recognised as supporting economic growth in a way we know can make a huge difference to the survival chances of businesses.

Wales Angel Co-investment Fund

We then have the new £8 million Wales Angel Co-investment Fund as launched recently by Ken Skates, Cabinet Secretary for Economy and Transport. I am sure that this will be an important and valuable addition to the business and wider entrepreneurial support system in Wales.

The new fund will give Wales a competitive edge; enabling the development bank to encourage syndicated angel investment and provide essential equity funding for ambitious start-up and growth companies in Wales. They’ll be able to match fund investment from£25,000 to £250,000 on a 1:1 basisalongside a support programme that ensures business needs are being met.

In fact, it is hoped that the Wales Angel Co-Investment Fund will support up to 80 businesses and create and safeguard 375 jobs over the next five years by attracting and encouraging angel investment across Wales.

Business angels invest in a wide range of sectors; healthcare and digital, e-commerce, biotech and pharmaceuticals and financial technology are consistently popular with 81% of all angel investments in the technology sector. Irrespective of sector, a successful investment is always attributable to strong management, vision, integrity and commitment. It really is all about people and passion. We have plenty of that in Wales.

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Development Bank of Wales Plc (Banc Datblygu Cymru ccc) is the holding company of a Group that trades as Development Bank of Wales. The Group is made up of a number of subsidiaries which are registered with names including the initials DBW. Development Bank of Wales Plc is a development finance company wholly owned by the Welsh Ministers and it is neither authorised nor regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The Development Bank of Wales (Banc Datblygu Cymru ccc) has three subsidiaries which are authorised and regulated by the FCA. Please note that neither the Development Bank of Wales Plc (Banc Datblygu Cymru ccc) nor any of its subsidiaries are banking institutions or operate as such. This means that none of the group entities are able to accept deposits from the public. A complete legal structure chart for Development Bank of Wales Plc can be found here.
DBW (10) Investments Limited is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities.